Network Appalachia: Access to Global Opportunity

76 Pages·2009·12.97 MB·English

NETWORK APPALACHIA

Access to Global Opportunity

Enhancing access and economic opportunity,
improving transportation coordination and
capacity, and achieving important new energy
and environmental benefits in the global
economy of the 21st century.
Foreword
At the 2007 Appalachian Regional Commission (ARC) summer meeting, the Commission established a
regional Study Group comprised of economic development, transportation, and international trade
professionals from across Appalachia. Under a planning initiative labeled “Network Appalachia”, ARC
directed its Study Group to carefully evaluate changing macro-economic trends and project the affects of
these trends on the Region’s future commerce and on the movement of goods to, from, and across
Appalachia. This document reports on the research and work done by the Network Appalachia Task
Force including the findings of the four regional workshops.
The Study Group participants have been appointed by each of Appalachia’s 13 member-states and the
Development District Association of Appalachia. Study Group members include:
Alabama Ohio
Mr. Rick Tucker - Executive Director, Huntsville Mr. Tracy Drake - Executive Director, Columbiana
International Airport County Port Authority.
Mr. James Loew - Director, Florence/Lauderdale
County Port Authority Pennsylvania
Mr. Herb Packer - Executive Director, Penn Ports
Georgia
Ms. Jane Hayse - Chief, Transportation Planning South Carolina
Division, Atlanta Regional Commission Mr. Steve Pelissier - Executive Director,
Appalachian Council of Governments
Kentucky
Mr. Greg Jones - Executive Director, Southeast Tennessee
Kentucky Economic Development Commission Ms. Jeanne Stephens - Director, Long Range
Planning, Tennessee Department of
Maryland Transportation
Mr. Robert Gordon - Director, Dr. Mark Burton - Director, Center for
Hagerstown/Eastern Panhandle Metropolitan Transportation Research, University of Tennessee
Planning Organization
Virginia
Mississippi Mr. Wayne Strickland - Executive Director,
Mr. Don Waldon - President, Tenn-Tom Waterway Roanoke Valley-Alleghany Regional Commission
Development Council (Retired)
West Virginia
New York Mr. Patrick Donovan - Director, Public Port
Mr. Don Rychnowski - Director, Southern Tier Authority, West Virginia Department of
West Regional Planning & Development Board Transportation

North Carolina Development District Association of Appalachia
Ms. Susan Howard - Federal legislative Mr. Robert Augenstern - Director, Southern Tier
Coordination, North Carolina Department of East Regional Planning Development Board
Transportation Mr. Robert Culver - Executive Director, Top of
Alabama Regional Council of Governments

Network Appalachia also benefits from the support and guidance of ARC’s Export Trade Advisory Council.
1.0 Introduction ......................................................................................................................... 1
Table of Contents
1.1 A Region Apart ................................................................................................................. 1
1.2 ADHS - Access to Opportunity ......................................................................................... 2
1.3 Transition to the Global Economy ................................................................................... 2
1.4 Network Appalachia ........................................................................................................ 4

2.0 Global Trade Patterns .......................................................................................................... 5
2.1 Containerization of Trade ................................................................................................ 6
2.2 Trade Barriers .................................................................................................................. 7
2.3 Information and Communication Technology ................................................................ 8
2.4 Demographics .................................................................................................................. 8

3.0 Appalachian Trade Perspective ......................................................................................... 16
3.1 Demographics and Consumption .................................................................................. 16
3.2 Regional Transportation Infrastructure......................................................................... 20
3.3 Strategic Highway System ............................................................................................. 21
3.4 Strategic Railway System ............................................................................................... 22
3.5 Strategic Waterway System .......................................................................................... 23
3.6 Inland Ports.................................................................................................................... 26
3.7 Coastal Ports – Global Access ........................................................................................ 26
3.8 Connectivity: Inland and Coastal Links .......................................................................... 31
3.9 Economic, Energy, and Environmental Success – And Expanded Capacity................... 33

4.0 Access Evaluations ............................................................................................................. 34
4.1 Access Definition ........................................................................................................... 36
4.2 Proximity........................................................................................................................ 36
4.2.1 Interstates.............................................................................................................. 38
4.2.2 ADHS/ National Highway ....................................................................................... 39
4.2.3 Intermodal (Container) Rail Terminals .................................................................. 40
4.2.4 Multimodal Rail Terminals..................................................................................... 41
4.2.5 Inland Waterway Terminals .................................................................................. 42
4.2.6 Intermodal Rail – Interstate Highway Intersection ............................................... 43
4.3 Data Compilation and Normalization ............................................................................ 44
4.4 Weighting and Ranking .................................................................................................. 44

5.0 Engagement and Collaboration ......................................................................................... 47
5.1 Building Capacity for the Future .................................................................................... 47
5.2 Putting the Capacity to Work ........................................................................................ 47
5.3 Engaging the Region ...................................................................................................... 49
5.4 Many Voices. Many Ideas. One Future.......................................................................... 50
5.5 Strategic Priorities ......................................................................................................... 52
5.6 Tactical Opportunities ................................................................................................... 53

6.0 The Way Ahead ................................................................................................................. 57
6.1 Projecting Forward: A Changing World of New Challenges and Opportunities ........... 57
6.2 Positioning for Success in the 21st Century: Network Appalachia ................................. 59
6.3 Proactive Planning: The Way Ahead ............................................................................. 64
Figure 2.1: World Exports of Manufactured Goods and Real GDP ................................................................. 5
Figure 2.2: Containerization of NaturTal Raubbbelre Im oporft sF ....i..g....u.....r...e....s... ....................................................... 6
Figure 2.3: Percentage of Population at Retirement Age and Average Age ................................................... 8
Figure 2.4: Share of US Household Expenditures Goods and Services ............................................................ 9
Figure 2.5: Manufacturing Labor Costs in US Dollars at Prevailing Exchange Rates ...................................... 9
Figure 2.6: Employment Shares by Type of Activity 1957 - 2006 .................................................................. 10
Figure 2.7: Employment Trends in Industries Manufacturing Containerizable Goods ................................. 11
Figure 2.8: Global Trade in Manufactured Goods, Oil & Metal Commodities and Agricultural Goods ........ 12
Figure 2.9: US International Container Volume Trade and Real GDP, Indexed to 100 in 1980 .................... 13
Figure 2.10: US Containerized Trade for Major Foreign Trade Routes ......................................................... 14
Figure 2.11: TEUs per 1000 Persons ............................................................................................................. 15

Figure 3.1: Population Density ...................................................................................................................... 16
Figure 3.2: Retail Sales.................................................................................................................................. 17
Figure 3.3: Density of Warehouse Businesses .............................................................................................. 18
Figure 3.4: Projected Population Increase .................................................................................................... 19
Figure 3.5: Projected Population Growth Rate ............................................................................................. 20
Figure 3.6: Strategic Highway System .......................................................................................................... 21
Figure 3.7: Strategic Railway System ............................................................................................................ 22
Figure 3.8: Emerging Intermodal Rail Corridors ........................................................................................... 23
Figure 3.9: Strategic Waterway System ....................................................................................................... 24
Figure 3.10: Emerging Intermodal Marine Highway Corridor ...................................................................... 25
Figure 3.11: Enhancing Access to International Ports .................................................................................. 27
Figure 3.12: ARC 2007 Import Volumes ........................................................................................................ 28
Figure 3.13: ARC 2007 Export Volumes ........................................................................................................ 29
Figure 3.14: Top ARC Import Volumes .......................................................................................................... 30
Figure 3.15: North Asia LCMA and 2007 Import Volumes ............................................................................ 31
Figure 3.16: North Asia LCMA and 2007 Export Volumes............................................................................. 32

Figure 4.1: ARC Counties showing Geographic Centroids (Blue) and its closest 5-Digit Zip Code (Red) ....... 37
Figure 4.2: National Highway Planning Network Version 2005.08 .............................................................. 38
Figure 4.3: The ADHS network (2007) ........................................................................................................... 39
Figure 4.4: The ICTF network used in the study ............................................................................................ 40
Figure 4.5: The Multimodal Freight Rail Network ........................................................................................ 41
Figure 4.6: Selected Inland Waterway Ports ................................................................................................. 42
Figure 4.7: Selected Rail – Interstate Intersection Locations ........................................................................ 43
Figure 4.8: Access Evaluation Map ............................................................................................................... 46

Figure 5.1: Venue/Dates of Regional Workshops and Members of the Study Group ................................... 48

Figure 6.1: The Appalachian Development Highway System ....................................................................... 60
Figure 6.2: Intermodal Corridors of Commerce ............................................................................................ 61
Figure 6.3: Inland Container Ports ................................................................................................................ 63

Network Appalachia

1.0 Introduction
1.1 A Region Apart
Appalachia. This is a land stretching for over 1,000 miles along the spine of the ancient
Appalachian Mountains from southern New York State to northeastern Mississippi. It
encompasses a rugged landscape more than twice the size of Great Britain. Yet, with a
population of only about one-third that of its trans-Atlantic neighbor, Appalachia is known for its
rural lifestyles and is home to abundant natural resources, spectacular beauty, and a distinctive
cultural heritage.
Famous for its rich coal deposits and dense hardwood forests, its mountain peaks and deep,
forest-lined valleys have provided residents with seemingly endless natural resources. Yet,
these same mountains have stood throughout history as nearly impenetrable barriers to socio-
economic interaction, commerce, and prosperity. When the builders of America’s Interstate
Highway System confronted the rugged terrain of Appalachia, they chose to build around the
Region rather than to penetrate this mountainous land with their modern highway system, a
system that would shape American economic prosperity for the remainder of the 20th century.
Appalachia is a place apart, a place where people have long-suffered the chronic economic
consequences of physical isolation. Recognizing both the obstacles and the potential facing the
Region, the President’s Appalachian Regional Commission (PARC) opened its 1964 report to
President Lyndon Johnson, with the following:
Appalachia is a region apart-geographically and statistically. It is a mountain
land boldly up-thrust between the prosperous Eastern seaboard and the
industrial Mid West – a highland region which sweeps diagonally from New York
to Mississippi…
Responding to this report, Congress passed the Appalachian Regional Development Act of 1965,
creating the Appalachian Regional Commission (ARC). The PARC report focused attention on the
need for investment in basic public facilities and stressed that programs must also be initiated
which are focused directly upon the people themselves. Finally, the report argued that progress
can only be realized through the coordinated effort of a regional development organization,
with state and local development units, with research and demonstration centers, and with
multiple state and federal agencies. From these priorities grew unique partnerships between
federal, state, and local interests, partnerships that remain at the very heart of the Appalachian
Regional Commission nearly a half century later.

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Network Appalachia

1.2 ADHS - Access to Opportunity
Recognizing the linkage between isolation and economic distress, the PARC report emphasized,
“Developmental activity in Appalachia cannot proceed until the regional isolation has been
overcome.” So fundamental was the need for enhancing Appalachia’s access that the
Appalachian Regional Development Act of 1965 devoted 85% of appropriated funds to improve
transportation access to, from, and within the Region and authorized the establishment of the
Appalachian Development Highway System (ADHS).
Unlike conventional roadways, ADHS is a 3,090 mile near-interstate grade highway system
composed of 31 individual corridors and designed to stimulate socio/economic development
throughout the 13-state Appalachian Region. Specifically, ADHS was designed to provide the
following benefits:
1. Link Appalachia to key external markets.
2. Enhance the flow of commerce, opening isolated areas to economic opportunity.
3. Facilitate commutation to work and delivery of key social services to residents.

Now nearly 85% complete, the impact of ADHS has been both widespread and profound. It is a
bridge that overcomes the obstacle of isolation and provides important access that remains
today critical to Appalachia’s economic growth and prosperity. In establishing its Strategic Plan
for the time period 2005-2010, ARC called for the continued development of ADHS as one of its
primary goals and committed to an increased focus on maximizing the system’s economic and
employment benefits to the Region.
Looking to the future, ARC commissioned a study in 2008 entitled Economic Impact Study of
Completing the Appalachian Development Highway System. The research determined that by
completing the yet unfinished segments of ADHS, the Region would benefit from $3.2 billion in
new wages, $5 billion of increased economic activity, and 80,500 new jobs. The study
highlighted the importance of these final links in completing ADHS; a system and its resultant
benefits that would be abbreviated for all time, if left unfinished. Finally, the study confirmed
that ADHS benefits extend far beyond the borders of Appalachia, as the capacity, safety, and
efficiency of ADHS is of growing importance, as so much of the nation’s highway capacity is
becoming increasingly overburdened with congestion.
1.3 Transition to the Global Economy
Throughout the nearly half-century since the launch of ADHS, the economy of Appalachia, and
of the United States, has been undergoing an unrelenting transformation from one almost
completely dominated by domestic commerce to a new and much broader international
marketplace, powered by the telecommunication forces of the world wide web and facilitated
through the creation of a fully-coordinated intermodal global supply chain. This is an economic
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Network Appalachia

transition that continues to present both challenges and opportunities, as it reshapes the flow of
commerce to, from, and across Appalachia.
As the Region was preparing to enter into the 21st century, a 1999 study commissioned by ARC,
entitled An Assessment of Intermodal Transportation Plans, Systems, and Activities in
Appalachia stressed the importance of better coordinating the region’s often disjointed
transportation resources. The study identified only seven locations throughout the 200,000
square mile Appalachian Region that can accommodate the intermodal interchange of freight
containers between trucks and trains, termed intermodal container transfer facilities (ICTF).
Such limited intermodal access results in higher shipping costs and a pronounced competitive
disadvantage for Appalachian businesses. Warned the study, “While ADHS has served as the
centerpiece of ARC’s economic development program, highways alone are no longer sufficient
to help Appalachia’s communities compete in the global marketplace.”
Six years later the Nick J. Rahall, II Appalachia Transportation Institute undertook an important
strategic look into ARC’s future entitled, Meeting the Transportation Challenges of the 21st
Century, Intermodal Opportunities in the Appalachian Region. The report identified emerging
east-west and north-south trade lanes across Appalachia, representing important new channels
of economic growth and opportunity. Taking advantage of its natural cross-roads location
between the northeast, mid-Atlantic, southeast, and Midwest, the report highlighted an
opportunity for Appalachia to serve as an inland-bridge, linking key coastal ports with major
supplier and consumer markets in the east, south, and Midwest. The report encouraged
Appalachia to position itself to attract and accommodate these growing volumes of commercial
activity to, from, and across the region. The study warned that, should Appalachia fail to take
advantage of this potential, these emerging corridors of commerce, and the economic benefits
that they represent, could simply bypass Appalachia. The study concluded with a seven-point
development blueprint for a 21st century logistics network that maximizes ADHS benefits by
positioning Appalachia to capture the full economic potential of these emerging corridors of
commerce:
1. Establish the institutional capacity to plan for and encourage transportation
development across local, county, and state inter-jurisdictional boundaries.
2. Expand inter-disciplinary cooperation between economic development, transportation,
and international trade interests.
3. Increase planning, coordination, and investment between public and private sector
interests to maximize economic and employment benefits to Appalachia.
4. Through a developing system of inland ports, enhance intermodal cooperation to better
connect transportation modes and strengthen the link between the Region’s economy
and its transportation network.
5. Take full advantage of advanced technology to strengthen the performance,
responsiveness and safety of the Region’s transportation network.
6. Track changing economic and commodity flow trends and proactively position
Appalachia to benefit from emerging corridors of commerce.
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Network Appalachia 

7. Advocate for a 21st century transportation system that can enhance the competitiveness 
of Appalachia’s existing businesses and attract new enterprise and employment into the 
Region. 
1.4  Network Appalachia 
At  the  2007  ARC  summer  meeting,  the  Commission  established  a  regional  Study  Group 
comprising economic development, transportation, and international trade professionals from 
across Appalachia.  Under a planning initiative labeled “Network Appalachia”, ARC directed its 
Study Group to carefully evaluate changing macro‐economic trends and project the effects of 
these trends on the Region’s future commerce and on the movement of goods to, from, and 
across  Appalachia.    Next,  the  Study  Group  was  charged  with  reviewing  the  Region’s 
transportation capabilities and their effect on Appalachia’s access to both domestic and global 
markets.  Building on the Appalachian Development Highway System platform, the Study Group 
was asked to provide the Commission with a comprehensive package of recommendations on 
how to develop a 21st century transportation network that can maximize both economic and 
employment benefits to the Region and ensure that Appalachia will never again find itself “a 
region apart”.    
The following chapters report on the research and work of the Network Appalachia Study 
Group, including the findings of the four regional workshops. 
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